CEX.IO Exchange Announces Crypto-Backed Lending Platform Launch in Australia

CEX.IO, one of the largest cryptocurrency exchange in the world, has announced the impending launch of a new cryptocurrency-backed loans service that will allow Australian crypto traders and holders to take out instant cash loans for their cryptocurrency assets.

Announced September 7, the new crypto loans service will become available in 217 countries around the world, including Australia, the United Kingdom, EU, and a range of Asian countries. CEX.IO LOAN will provide crypto users with the ability to borrow capital against their cryptocurrency holdings without the need for credit checks. 

$10 Billion Crypto Backed Loans Market Explodes in Australia

Data published by Credmark via Forbes reveals that crypto-backed lending is rapidly becoming one of the largest lending mechanisms in the blockchain ecosystem, with the crypto lending market reaching $8 billion in total lifetime loan originations by the end of 2019. The market has exploded in 2020, capturing another $2 billion by Q3 2020.

Crypto backed loans are relatively straightforward — users lock up their cryptocurrency with a loan provider, and are provided with a specific percentage of the assets locked as the loan principal. Recent changes to the tax treatment of cryptocurrency around the world have made crypto backed loans highly popular, as under specific international tax laws or in some scenarios a crypto loan allows users to access cash without creating a taxable event.

CEX.IO will provide users with the ability to borrow between $500 and $500,000, with larger and longer duration loans providing more attractive interest terms. Anton Chashchin, Commercial Director for the CEX.IO LOAN service, highlighted the various benefits of the crypto loans in a September 7 press release:

“Our clients are a vibrant and diverse group of market participants, whose needs evolve with the industry … Our loans offer that extra boost, which traders, investors, startups, and entrepreneurs in general, need, while they can still benefit from the potential appreciation of assets they own,”

Notably, CEX.IO will make loan funds available via a card — delivering additional crypto card functionality not yet seen in the crypto backed loans ecosystem.